Given below is the scatter plot of the price/earnings ratio versus earnings per share of 20 U.S.companies.There appear to be a positive relationship between price/earnings ratio and earnings per share.
Definitions:
Correlational Method
A research method that examines the relationship between two or more variables to determine if a statistical relationship exists.
Variables
factors or conditions that can change or vary within an experiment or study, potentially impacting the results.
Scientific Method
A systematic approach to investigation that includes observation, hypothesis formulation, experimentation, and conclusion to validate or modify the hypothesis.
Study Retention
The ability to maintain and recall information that has been learned over time.
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